Chapter 3, Problem 1Q

What is the link that connect the schedule of cost of goods manufactured to the scheduled of cost of goods sold?

To determine

The connection between Cost of Goods Manufactured and Cost of Goods Sold.

Answer to Problem 1Q

Solution: “Finished Goods” is the connection between Cost of Goods Manufactured and Cost of Goods Sold.

Explanation of Solution

Cost of Goods Manufactured: It implies the value of inventory that has been produced in a given period.

Cost of Goods Sold: It implies the value of goods that has been sold.

Formula to show the link between the two:

Particulars	$
Cost of Goods Manufactured
(+) Beginning Inventory in Finished Goods
(-) Closing Inventory in Finished Goods
Cost of Goods Sold

Conclusion

To conclude, it must be said that connecting link between the two schedules is the net inventory in Finished Goods.